SHARES in Games Workshop fell by nearly 30 per cent yesterday as the models and figurines retailer said that poor sales this spring would hit profits.

The news from the company, which specialises in the Dungeons & Dragons role-playing game, comes after profit warnings from Jessops, the camera shop, and Topps Tiles, the ceramic tiles specialist.

Games Workshop said the slowdown in sales, particularly in the UK and Europe, would put it well below budget in March, despite the early Easter holiday, and it was unlikely to meet profit expectations for the year to May 29. The market had forecast sales of between £151 million and £162 million.

Games Workshop said that sales would fall below £151.8 million, which was achieved last year when the company benefited from the popularity of Lord of the Rings figurines. However, sales are expected to be comfortably above the 2003 figure of £129 million.

Games Workshop said it would focus on finding operational efficiencies as it tries to maintain gross margins but the sales shortfall was expected to affect profits “materially”.

House broker Robert Baird yesterday cut its underlying profit forecast for the current year to £13.9 million from £22.8 million.

But, the retailer said: “Games Workshop remains a highly profitable and cash-generative business.”

The company said that it would maintain the dividend at 14.025p a share.

Shares in Games Workshop fell 213½p to a two-year low of 502½p yesterday.